Going to see my first property...nervous
Hey All,
New here and to Real Estate. I've decided that Real Estate is the direction I want to go in as far as my investment strategy to grow my net worth and set myself up for later in life. I'm about to go see my first property Tomorrow. It's a small two bedroom 1.5 bath outside my current town the asking price is $105,000 (this house was originally put up for say 3 years ago for $170,000, later being taken of the market and most recently in the past 2 weeks the price was dropped from $119,00 to the current price) My plan would be to move into this house with my partner and rent out the other room. Crunching the numbers I think I could rent the room for $400 per month, collect $250 per month from my partner, which would leave me to pay the remaining expenses of roughly $400 per month, which is slightly less than what I am paying now to rent a room in a house. from my research in investing so far my concern is that this deal isn't good enough and I should only be looking at properties that can turn a profit. The problem with that is those properties are mostly multifamily that are either significantly more expensive or require much more work than I should probably take on this early in my investment career. the comforting thing about this house is that if I have trouble renting out for a period of time I can afford all of the expenses on my own if need be. After living in this house for a while, ideally I would like to buy a 3-4 unit building, move into one unit, rent the other units out, then start rent the entire first house for roughly $1200 per month (no utilities included) which would create an income on that property of about $200 per month. what do you all think, am I crazy for even thinking about buying this house? Should I skip right to looking for a 3-4 unit place even if that could stretch me pretty thin financially?